Builders have dramatically decreased production in response to changing market conditions. Total new construction inventory has fallen by 15.3 percent when compared to this time last year.
The average price per square foot of all new construction units is down 7.9 percent, confirming that builders are reducing prices to sell their excess inventory.
Condos have the highest month's supply of any property type. This growing imbalance is almost entirely due to a large drop off in sales of new construction condos, down 37.4 percent from this time last year.
Single-family detached homes are holding their value better than other property types. Their current supply in months is the lowest, the sales rate has declined the least, and their average sales price is down only 0.7 percent from this time last year.
Massive inventory growth is taking place in the lowest price ranges, possibly due to the role of subprime foreclosures.
Information gathered from the Minneapolis Area Association of Realtors
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